2015 (10) TMI 911

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....espondent ORDER: It is the submission on behalf of the appellant that show-cause notice was issued on 14.12.2000 proposing penalty under Rule 173Q of Central Excise Rules, 1944. Thereafter, one corrigendum was issued on 17.1.2002 proposing penalty under Rule 173GG of Central Excise Rules, 1944. Unfortunately, none of the show-cause notice is available on record. It is only consequence of the....

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.... Rules, 1944. He has also no regard to the law relating to penalty. 3.2 Without foundation in the original show cause notice to levy penalty under Rule 173GG, right to defense cannot be denied. No one can be held deterrently violating the principles of natural justice. The most interesting feature of this appeal is that there was disproportionate penalty of Rs. 1,70,000/- for the default of pay....

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....inst reasonable restriction which is also described as proportionality test. Without mens rea, if penalty is levied that becomes arbitrary and it affects the fundamental rights. Therefore, rule making authority being subordinate to legislation no scope is provided to that authority to prescribe any disproportionate penalty. This ground is alone enough to set aside the penalty imposed. 4. Added ....